I hope
you are keeping well as we move towards the second week of lockdown.
Please
note that as we have received an extensive number of inquiries from businesses
that can be broadly categorised as operating within the ‘Tourism/Hospitality’
sectors, we have developed an initial guiding response on support structures
and measures announced to-date. It is our understanding that a number of
businesses on this mail may have already applied for support via such
interventions, but we thought it would be useful to notify you nonetheless.
Please
note that the information below has been verified to the extent that it is
possible, however Wesgro recommends directly contacting entities managing funds
and interventions for guidance and to ensure the correct application of
criteria.
IDC
Interventions:
Background
to IDC led interventions can be accessed here (although their application to
the tourism/hospitality industries, in our interpretation, is limited): https://www.idc.co.za/2020/03/24/idc-interventions-in-response-to-covid-19/
Tourism
Relief Fund for SMMEs:
Kindly
find attached an overview of the Tourism Support Fund provided to Wesgro by the
Department of Tourism.
The
Tourism Relief Fund provides once-off capped grant assistance to Small Micro
and Medium Sized Enterprises (SMMEs) in the tourism value chain to ensure their
sustainability during and post the implementation of government measures to
curb the spread of Covid-19 in South Africa.
Capped
at R 50 000 per entity, grant funding can be utilised to subsidize
expenses towards fixed costs, operational costs, supplies and other pressure
costs items.
Criteria
to qualify for the tourism relief fund:
https://www.supportbusiness.co.za/faq/faq/what-is-the-criteria-to-qualify-for-the-tourism-relief-fund/
Department
of Small Business Support to SMMEs: (please ignore this section if your
business does not qualify as an SMME)
The
Department of Small Business Development (DSBD) has introduced relief
mechanisms for small and medium enterprises (SMME’s) impacted negatively, both
directly or indirectly, by the COVID-19 Pandemic.
Specifically, the DSBD has published guidelines for application for three
intervention measures, namely:
1. Debt Relief Finance Scheme;
2. Business Growth/Resilience Facility; and
3. The sefa-Debt Restructuring Facility.
The fund is currently budgeted at R500 million, but the expectation is that
this fund could possibly be increased.
The Debt
Relief Finance Scheme (qualifying criteria attached) is aimed at providing
relief on existing debts and repayments, to assist SMMEs during the period of
the COVID-19 State of Disaster. In essence, the debt relief facility is a soft
loan that will provide funding for existing businesses in distress due to the
Coronavirus. The relief will be for a period of 6 months, effective 01 April
2020. For SMMEs to be eligible for assistance under the Debt Relief Fund, the applicant
must demonstrate direct link of the impact or potential impact of COVID-19 on
the business operations.
The
Business Growth/ Resilience Facility (qualifying criteria attached is
specifically created to enable continued participation of SMMEs in supply
value-chains, in particular those who manufacture (locally) or supply various
products that are in demand, emanating from the current shortages due to
COVID-19 pandemic, in line with the National Treasury Instruction Note No. 8 of
2019/2020. This facility will offer working capital, stock, bridging finance,
order finance and equipment finance and the amount required will be based on
the funding needs of the business.
The
Sefa-Debt Restructuring Facility is geared towards sefa-funded SMMEs that are negatively
affected by the pandemic. A payment moratorium/ holiday will be given to the
qualifying SMMEs for a period of a maximum of 6 months, in efforts to reduce
the installment burden of loan obligations on the affected SMMEs. These SMMEs
will be required to illustrate the direct linkage of their business distress to
the pandemic.
The online application form will be available from Thursday, 02 April 2020. It is important to note that only SMMEs that are registered on the database will be considered. Please go to https://smmesa.gov.za/ to register your business.
Guidelines
for Application: Debt Relief Finance Scheme:
https://www.gov.za/sites/default/files/gcis_documents/Guidelines%20for%20Debt%20Relief%20Application.pdf
https://www.gov.za/sites/default/files/gcis_documents/SMME%20Debt%20Relief%20Scheme.pdf
SMMEs are encouraged to make use of the alternative email at info@dsbd.gov.za
or call the Hotline number 0860 663 7867.
Guidelines
for Application: Business Growth/ Resilience Facility:
https://www.gov.za/sites/default/files/gcis_documents/Guidelines%20for%20Business%20Growth%20Resilience%20Facility%20Application%20%2028%20March.._.pdf
Private
sector interventions:
Please
be advised that Wesgro is currently unpacking private-sector led interventions
as announced by the Rupert; Oppenheimer and Motsepe families, as well Naspers.
We will revert as soon as clear information is available. In the interim,
please note the following links which provide some initial guidance:
Banking
sector interventions:
All
banks have now made announcements relating to support measures being undertaken
to assist businesses. Through conversations held with regional Heads of banking
institutions, Wesgro continues to recommend that you contact your bank directly
to understand what package the bank is able to put together to support your
business.
The
Wesgro team will shortly be uploading a series of FAQs to the www.supportbusiness.co.za website
to guide on banking sector interventions.
Supporting
your Employees:
A number
of entities have written to us on guidance relating to UIF and TERS. Our team
continues to source information relating to how best to access the structures
announced. On 28 March the Department of Employment and Labour issued the
following update: http://www.labour.gov.za/update-on-employment-and-labour-issues-arising-from-the-lockdowns
A TERS
guidance document has also been attached herein “COVID19TERS EasyAid”.
Regarding
interventions made by National Treasury, please peruse the following guiding
note which relates to: (http://www.treasury.gov.za/comm_media/press/2020/20200329%20Explanatory%20Notes%20on%20COVID%2019%20Tax%20measures%20-%2029%20March%202020.pdf)
- Expansion
of the Employment Tax Incentive age eligibility criteria and amount
claimable
- Deferral
of the Payment of employees’ tax liability for tax compliant small to
medium sized businesses
- Deferral
of the payment of provisional tax liability for tax compliant small to
medium sized businesses
As you
will note from the ‘Draft’ structure, the legislation is not yet promulgated,
but is expected to be promulgated shortly.
Ongoing
support:
We fully
understand that the above overview may not provide the exact answers to
questions you have, and we will continue to strive to find the answers. Wesgro
continues to update the COVID-19 webpage – www.supportbusiness.co.za – with
information on key interventions being undertaken by government and private
sector. The website is designed to be easily searchable by keyword to guide you
towards specific areas where you may require support.
Please
also feel free to write to supportbusiness@wesgro.co.za
with specific questions you have.
